Legislature(2007 - 2008)HOUSE FINANCE 519
03/29/2007 01:30 PM House FINANCE
| Audio | Topic |
|---|---|
| Start | |
| HB137 | |
| HB2 | |
| HB61 | |
| HB29 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | HB 2 | TELECONFERENCED | |
| + | HB 29 | TELECONFERENCED | |
| + | HB 61 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | HB 137 | TELECONFERENCED | |
HOUSE BILL NO. 61
"An Act relating to tax credits for cash contributions
by taxpayers that are accepted for certain educational
purposes, including vocational education programs and
courses at the secondary school level; and providing
for an effective date."
REPRESENTATIVE MARK NEUMAN, sponsor, explained that HB 61 is
a change in title to a current tax credit available to
postsecondary schools, which now would allow the credit for
secondary schools. He thanked Representative Hawker for his
assistance on the CS.
2:36:51 PM
REX SHATTUCK, STAFF, REPRESENTATIVE MARK NEUMAN, referred to
the applicable statutes relating to the bill. He explained
that the tax credit can be used against the tax due for cash
contributions accepted for direct instruction, research,
educational support purposes, including libraries and
museums, and contributions to endowment, by an Alaskan
university foundation or by a non-profit, private, or
public, two-year or four-year college accredited by a
regional accreditation association. A section was added to
include secondary school level vocational educational
courses and programs. The tax works by giving a credit
depending on the amount of contribution.
2:39:09 PM
Representative Thomas asked about a potential amendment.
Mr. Shattuck noted a concern about leaving Seward's AVTEC
out due to its unique nature. Representative Neuman thought
that AVTEC was included already and the amendment was not
necessary.
Representative Kelly asked why the bill would exclude
private secondary programs, such as one funded by a
corporate sponsor. Representative Neuman replied that a
state-funded tax credit should be for a state-funded
program. Representative Kelly disagreed; he pointed out
that private universities are eligible. He asked why
accredited non-public schools are excluded.
2:42:38 PM
Representative Nelson thought Representative Kelly might be
referring to tribal colleges. Representative Kelly said he
is referring to secondary private schools with a corporate
donor. Representative Neuman said it was not his intent to
exclude them. He was just trying to extend the opportunity
to secondary level schools. Representative Kelly asked if
an amendment could be worded to include private secondary
schools. Representative Neuman pointed out that it is his
intent to keep the fiscal note zero. Representative Kelly
thought it would be a positive step to change the bill to
include private secondary schools.
2:45:21 PM
Representative Nelson wondered if the People's Learning
Center in Bethel would benefit from this bill.
Representative Neuman thought it would because it is a
secondary school. Representative Nelson said it is not in
the school district.
Mr. Shattuck said that the way the bill is written the
People's Learning Center would not be included. The bill
does not include non-profits. Representative Neuman was
open to expanding the bill to include them. Mr. Shattuck
related the history of what has been received in the past.
Mr. Shattuck observed that non-profits would not be included
in HB 61. Representative Neuman interjected that they would
be covered under HB 2.
2:50:39 PM
Representative Kelly stated that he was not worried about
the fiscal note.
Representative Neuman explained that HB 2 makes it easier
for contributions at the federal level to be considered
under "defined public purpose".
Mr. Shattuck explained how federal tax credits would work.
The state and federal government would be responsible for
their own share.
2:53:26 PM
In response to a question by Co-Chair Meyer, Ms. Scavera did
not believe that AVTEC would be covered by this legislation.
Co-Chair Meyer concluded that the People's Learning Center
would not be covered as well. Ms. Scavera agreed. Co-Chair
Meyer questioned the effect on the fiscal note and revenue
to the state with an expansion of the program.
PAUL DICK, TAX DIVISION, DEPARTMENT OF REVENUE could not
respond to the question, since it would be impossible to
predict the amount of students that would switch studies,
but he did not think the impact would be great.
2:55:38 PM
Representative Kelly asked what would need to be done to
certify a non-profit or private institution for
accreditation.
RICHARD LUTHER, SPECIAL ASSISTANT, DEPARTMENT OF EDUCATION
AND EARLY DEVELOPMENT observed that there are a number of
secondary programs that are not accredited. Representative
Kelly concluded that accreditation would not be required.
Mr. Luther explained that accreditation covers all programs
within a school.
2:59:51 PM
Representative Joule thought there was only one tribal
college in Alaska in Barrow. Ms. Scavera thought that
school would qualify because it is accredited.
Representative Nelson noted that Bethel has a center that
teaches flying and wondered if it would fall under the
legislation. Ms. Scavera explained that it would probably
not be covered if it is not associated with a school
district.
3:01:33 PM
Representative Kelly suggested that there may be an
opportunity to expand the legislation.
Representative Hawker acknowledged the merit of expanding
vocational programs, but cautioned that the "gate" not be
opened too wide. He observed that school districts are a
recognizable, qualified target.
Representative Neuman echoed concerns of Representative
Hawker.
CSHB 61 (W&M) was heard and HELD in Committee for further
consideration.
3:04:56 PM
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